Munich Re's CEO Doubts Profitability of Life Insurance Business, FTD Says

Munich Re’s Chief Executive Officer Nikolaus von Bomhard has concerns about the profitability of the life insurance business, Financial Times Deutschland reported, citing an interview.

German life insurance is "not very profitable," von Bomhard told the newspaper. The model is based on long-term interest rate guarantees for clients that can’t be delivered at the moment because capital market rates are too low, the FTD said.

Von Bomhard added that he is very optimistic about the company’s business in general and Munich Re is looking for interesting niche markets to grow, the newspaper reported.

To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net;

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